The proper way to describe the Unit holder asset is not as shown. The total number of units sold at the IPO represent the total volume on oil, gas and NGL in the reservoir. There were 18,000,000 unit sold at the IPO. The daily production of all the wells is sold every 90 days. The distribution is the gross sales minus any expenses, such as, taxes, management fees, maintenance such as work over etc.
What is left is divided by the number of units, and is distributed to the units holders.
To calculate your distribution multiply the declared distribution by the number of units you own.
Over time the volume produced will diminish, therefore the distribution will diminish as well. Usually the US Royal Trust as a declared life span and/or a production volume limit. The total number of Quarters WHZ will last was 39 .63, or December 2021. All this was set up when crude was $100. Today at $50 the cost of managing WTZ is severely under challenges, such is life.
The close out date for the quarter K8 report is 30 days before the Xdate. It does take time to prepare the report and have the approval of the BOD.
We have 3 open days before the close out date or 13 October. So far this 3Q the distribution should be $1.00 plus/minus!!!
I would think the shutdown will affect this quarter only. The shut down is for 1 week or through September 27 Max.
I had no problem buying IEVM. I get a notice saying the down side of buying, but the order goes through. My broker is a reputable outfit, but I make my own decision and buy or sell right off the net.
This $.91 is so far this Q3. Again I was traveling and missed several days crack numbers, I average those missing numbers.
It will be interesting to find out how much more ALDW penetrated the Phoenix market? The Big Spring refinery is competitive with the West Coast refineries.
Many believe that the Quarter ends on the conference call. Not so, quarter ends 30 days, give or take a few days, from the xdate. It does take time to calculate and prepare the K8 report. So far this quarter III my 3,2,1 crack is $15.70. I have been traveling and my calc is missing several days cracks. I average the missing days. This translate to a $.91 distribution. Still acceptable as compared with others MLPs.
Having worked in the O&G drilling business, H2S is an ongoing problem which has large protection cost. IEVM potential is substantial, but the O&G crash we are seeing is the reason IEVM is not taking off.
I strongly believe that once the H2S protection IEVM provide migrate throughout the O&G industry Excelyte will take off. Who can be the potential competition? The mud makers are providing all the ingredients that control the drilling efficiency, except the drilling bits. There are 2 ingredients that are used in bulk, depending on the geology to be drilled or the result anticipated, water or diesel. Today the fracking drilling technology LPG or LNG are starting to be used, this is new.
The mud ingredients are purchased in bags. Excelyte is processed locally and shipped to the drilling sites. Mud ingredients makers are not in the locally manufacturing business. This has to do with the effective life of Excelyte. IEVM advertises that after 30 days, Excelyte can no longer be detected. I believe this is the deterrent for large companies to compete with IEVM. The mud returned is processed and the sand and silt are removed and have to be disposed of. This way the density and viscosity can be controlled. This is a major advantage Excelyte has, a side from the drilling mud itself, in the decontamination and disposal of drilling returns.
I have little dough that Excelyte will succeed, the question is when. It is unlikely that a large contractor like Baker Hughes or Schlumberger will enter or buy out IEVM. It would require a large foot print in many drilling areas. They provide a service with no or little manufacturing. If equipment is required to provide the service, it is purchased from accredited subcontractor.
Can Excelyte become an accredited subcontractor to a mud supplier, certainly a possibility?
You have to know what you buy, obviously you don't. US trust, MLP, stock, ETF etc.. are very different financial instruments. Once you lose some and you take the time to read and understand, you will learn, moron??? Ha! Ha!
First NTI is not a stock, it is a unit because NTI is not a corporation or a company. NTI is a MLP, when you buy a unit, you own a portion of what NTI produces and sale. This is why the "Distribution" is variable. If the refinery has a shut down of any kind that may reduce the production, the volume of sales will be affected, so will be your distribution. So readjust your understanding of MLP versus Equities.
NTI market is in the upper Minnesota, Baken crude oil competition is the R&R. What I mean is the delivered price of Baken crude is higher than Brent on the East Cost. The Baken still is competitive in the upper West Coast. This is good for NTI, the discount should be good. The Baken producers have to use pipeline to the GOM to compete, but throughput is still not quiet enough.
Never heard of high speed trading. We are good trader’s clients in normal times. Since traders make money on a buy or sell, computer trading takes over when the market goes crazy. The best strategy is to let these high rollers have their day. I will make my money somewhere around mid-October. Fact of life.
My research goes back to this definition in May 2014. LITTLE RIVER, S.C., May 14, 2014 (GLOBE NEWSWIRE)
Integrated Environmental Technologies, Ltd. markets and sells its anolyte disinfecting solution under the Excelyte(TM) brand name, which is produced by the company's proprietary EcaFlo(TM) equipment that utilizes an electrolytic process known as electrochemical activation to reliably produce environmentally responsible solutions for cleaning, sanitizing and disinfecting.
Anolyte, is in electrolysis, the portion of the electrolyte in the immediate vicinity of the anode
Anode is the electrode or terminal by which current enters an electrolytic cell, voltaic cell, battery, etc.
I did read another article where by Ecelyte could not be patented. I am not a biologist or chemist. If I understand what the “electrolytic” process does, it modifies the polarity of the water. My guess is that the Excelyte process, the EcaFlo equipment, is where the proprietary secrete, if we can used this word, is.
All I know, in the manufacturing of microelectronic, the etching is done by spraying chemicals or gases on wafers. When the wafer has to be washed, water is sprayed on the wafer. This water is negatively polarized. This will keep pollution out. In this case the spaces between leads on the chip are in the 2 or 3 microns. Any sizable pollution would short out the circuit. Polarizing the water does not allow the pollutant to stay on the chip. This explanation may be far fetch, but it does make sense.
In the case of Excelyte, the negative polarization of the water kills the pathogens, bacteria, viruses, and germs. Now what is the level of the negative polarization is company confidential. That is my guess!
ALDW is going to go through the end of the driving season. The switch is going to go toward heating oil as fall start in North Texas. Probable there will be a turnaround during the slow season. This time the big plus is the Phoenix market, the new market ALDW has gone to.
To date ALDW has gone down 15.23% since Xdate. This is normal, last quarter ALDW went down 37.28% that was with the start of the driving season. In 2014-Q3 ALDW went down 40.18%. No sense to panic, ALDW will do OK, timing is the name of the game!
Before my retirement I worked on offshore rigs for SEDCO and ENSCO, than I moved on to EXXON. The drilling business is a small but close fraternity. As a subcontractor it takes time to prove that your product is real and will do the job. IEVM broke the, shall we say, fraternity. Many competitors to EP are looking. If the buzz is that Excelyte is the scavenger that works and is a money winner, the copy cats will come. I have owned IEVM for over a year, after reading and article on RigZone. I knew it would brake in. This new management is with it!
ALDW is a volatile MLP. It is a well manage MLP. It has 1 refinery in Big Spring Texas. Because of this location ALDW can take advantage of significant discount, Big Spring is not far from Midland and the Eagle Fort and Permian shale play. Yes the crack spread is good, but when you had the discount, WTI or WTS this crack spread is super good. Big Spring was modified last year and can use WTI or WTS and the daily capacity increase to 74,000 BPD. ALDW own and operate a chain of 7eleven, so its own its retail network. To make thing even better, ALDW is penetrating the retail gasoline/diesel Phoenix market, this is a big deal. Adding Phoenix to the Austin, Santa Fe, Amarillo, Midland, Odesa, San Angelo, Lubbock ETC... Puts ALDW in a very good position.
Now all refineries are prone to unscheduled shutdown, fact of life. I am up 20% this year. I have bought and sold ALDW 6 times this year. I do not own ALDW presently; do not plan to purchase ALDW for the next 60 days there about. I watch ALDW closely.
This is not a correction! The market policy is to deduct from the Xdate traded unit price the distribution. The general understanding is that the value of the MLP requires the deduction of the distribution. In other word assuming that the value of the MLP is $1 000 000 and $100 000 is distributed, the value becomes $900 000. I do not consider this as a correction.
Today the Xdate of ALDW started at $26 and closed at $24.23 a drop of $1.77. The real drop is $0.73. ALDW daily average high/low is $1.19 over the last 20 days. At this time ALDW is within its daily volatility. It is understood that the drop ALDW has seen during 2015-Q2 was 37% ($19.01/$26.00), for 2015-Q1 the drop was 39% ($15.81/$22.01). ALDW is a volatile MLP and is prone to shut down for turnaround or fires. The 2014-Q1 distribution was zero, nada, rien, trading ALDW has to be close to the vest. This comment is applicable to many refiners, what is considered small refiners compared with VLO or XOM.
We all have our trading tactics! Mine is to track the daily percent change between the unit price the day before the preceding Xdate and the daily price. Looking at several quarters, one can see a pattern, but not always. I will usually buy on that low percent and sell at the top of the bump. Not really interested in the distribution. There are possible taxes associated with it, and I want to stay tax free. I just pay taxes on my IRA distribution sometimes.
Excellent analysis of the Saudi Kingdome. I do question the Saudi currency reserve. The Kingdome population is very small, and the earning, in dollar, has been study and huge over the years. The currency reserve is not in Billion dollar and or gold but in Trillion. The king may have to sell some assets, most likely outside the Kingdome. The Saudis did not start this crash without researching the subject. There are two goals in the Saudis policy:
1. To keep or increase their market share by keeping their production high, which floods the world market with crude.
2. To keep in check the Iranian #$%$ religious theology. The Saudis believe they are the guardian are the Sunni faith, and of Mecca. They will do whatever is necessary to keep it that way.
My question is: Can the Saudis keep OPEC a closed cartel? At some point several OPEC members with large population will not be able to keep up with large social budgets but small O&G earnings. Terrorism is in the middle of this policy. Is it possible to question the Saudi motif of the crude oil crash? It is really to bankrupt the competition, or to control Iran revenue and competition. Crude at $50 or lower cannot support the amortization of very large petroleum projects. Few projects are economically viable beyond 25 years. Exxon for example amortizes its JV projects over 5 to 10 years only. Added to the economics the political stability with the JVs becomes too risky.
The Saudis will have to support the Sunni nations, or their policy will fail. Iran cannot sell what it does not produce. Stay tunes, the ending is closer than we believe.
My conclusion is, the postponement of mega projects by the majors will over times impact the replacement of world reserve. 5% of the world reserve is depleted every year. 2 years postponement equates 10% and 4 years 20% loss reserves. These projects postponements are based on the amortization of these projects. From inception through first oil 5 years has passed by. Lower crude oil price means longer amortization. Can a major wait 30 years or more for the amortization of an “elephant”? My guess is not, the profitable production max around 20 to 25 years for billions projects. It has to do with the equipment life and the field pressure drop. My experience with Exxon is that they will spend 10% to 15% more up front not to have a shut down for 5 years. Since they get paid in crude oil, shut down means big loses. After 5 years the contract terms changes.
Shale fracking production does not need huge (billions) up front money. The invested capital is spent over the life of the project to keep the IP-EUR balanced. The capital invested can be closely managed over time. Obviously there are several shale producers that will not survive; M&A will choose the survivors. As soon as the first well produces, an MLP IPO can generate the needed capital.